We’re at a critical time for the digital economy.
As digital technologies continue to transform the economy, many leaders are struggling to set a digital strategy, shift organizational structures, and remove the barriers that are keeping them from maximizing the potential impact of new digital technologies.
This observation by the Harvard Business Review article The Industries That Are Being Disrupted the Most by Digital is very true. The article, which features results of a survey by global assessment and recruitment firm Russell Reynolds Associates of more than 2,000 C-level executives on the impact and structure of digital technologies across 15 industries, presents a barometer for business disruption, broken down by industry. Below, view key findings from the Harvard Business Review article.
- Of the 2,000 C-level executives surveyed, the breakdown by industry of those anticipating massive digital disruption in their industries included media (72%), telecom (64%), consumer financial services (61%), retail (575), technology (57%), insurance (53%) consumer products (52%), education (50%) and healthcare (47%).
- Unsurprisingly, the most disrupted organizations were B2C, with media being the most disrupted and telecoms and consumer financial services close behind. Good news, 90% of these organizations profess to having a digital strategy in place.
- The most disrupted industries typically suffer from a perfect storm of two forces. First, low barriers to entry into these sectors lead to more agile competition. Secondly, large legacy business models which often generate the majority of their revenue. These organizations, therefore, have embedded cultural and organizational challenges when it comes to changing at the pace required.
- At the other end of the spectrum, the industries that are least disrupted often have perceived higher barriers to entry, and a smaller part of their business that can be digitized. They are less affected, but not immune.
A Time for BPR
Business Process Re-engineering, or BPR, is an integrated set of management policies, project management procedures, and modeling, analysis, design and testing techniques for analyzing existing business processes and systems; designing new processes and systems; testing, simulating and prototyping new designs prior to implementation; and managing the implementation process, as defined by Gartner.
As today's ever increasing digital disruption continues to create unprecedented pressure on operations managers and business leaders to cultivate an environment that is flexible, agile and dynamic, the drive of enterprises to deploy BPR is strong.
Why? Organizations want to function in a flexible, agile and structured manner to best enable personnel to be more multi-skilled, as well as enable processes to be more strategic and technologies to be best exploited and optimized for operations management and business growth. Enterprises - focusing on ways to elevate their people, processes and technologies to new levels of collaborative and strategic performance - are repositioning for the necessary digital transformation that is impacting all markets.